FundFire: Endowments Turn to Hedge Funds as Markets Swing

May 29, 2018

Endowments and foundations may be turning back to hedge funds as they expect heightened market volatility to stick around for a while, according to NEPC’s most recent endowment and foundation survey.

But, recent market swings have 80.9% of endowments and foundations surveyed by NEPC wary of a longer-term trend of volatility, the survey says. And 49% of the 47 endowments and foundations that took NEPC’s survey believe that hedge funds will likely benefit from the potential longer-term trend of market volatility.

“They need to look for higher sources of return and are looking more in the alternative markets,” says Cathy Konicki, a partner at NEPC, who says hedge funds should be able to provide those returns in times of heightened volatility.

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Topics: Endowments & Foundations, Press Coverage

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